This lesson covers aspects of store-based operations in retail. After completing this lesson you should be able to:
Identify the unique characteristics of store-based retailers and their various shopping locations
Define traditional retailers
Describe the different types of discount retailers
Explain how services retailers differ from other retailers
Identify the forms of retail business ownership
Explain the different types of retail ownership structures
Brick-and-Mortar Retail
Key Terms for This Lesson:
Anchor store: large retail store that attracts many consumers to a shopping mall
Big box store: large specialty discount store
Boutique: highly-specialized retail store that caters to consumers seeking unique items and a high level of customer service
Brick-and-mortar: store that has a physical location to display and sell merchandise and services
Central business district (CBD): central location for retail, business, and transportation activities in a city or town; often referred to as downtown
Chain store: two or more retail stores owned by the same person or company
Corporation: business that recognized as a separate legal entity from its owners
Factory outlet: retail store in which excess or unsold merchandise is sold at a discount directly to the public by the manufacturers, designers, or specialty stores
Franchise: legal agreement granting the right to sell a company's goods or services in a particular geographic area
Franchisee: people who buy the rights to use the brand, learn the franchisor's trade secrets, and open their own business
Franchisor: parent company that owns the chain and the brand of a franchise
Independent store: small retail business with one location and is privately owned and operated
Kiosk: very small structures with one or more open sides to display and sell a limited number of goods
Leased department: space within a larger store that is leased to a smaller store, boutique, or designer
Liability: legal and financial responsibility
Limited liability company (LLC): form of business ownership that limits the personal liability of owners and can provide tax benefits Manufacturer retail store: retail store that only sells the products from one manufacturer
Off-price retailer: retailer that sells brand-name merchandise at big discounts
Partnership: relationship between two or more people who join to create a business
Service retailer: business that provides services for a price
Sole proprietorship: business owned by one person
Specialty store: retailer that sells a limited product line, but offers a wide variety options within the product line, in addition to other related items
Stockholders: people who invest money in a company through buying stock, or a part ownership
Supercenter: very large discount department store that also sells a complete line of grocery products; also called a hypermarket
Town center: open-air shopping center with many retailers
Traditional retailer: store-based retailer that uses that five senses (sight, touch, taste, smell, and hearing) to enhance the shopping experience
Warehouse club: retailer that only sells merchandise in bulk
Important Concepts for This Lesson:
Brick-and-mortar stores have a physical location to display and sell merchandise and services. These stores are typically locate in a shopping center or central business district. Shopping centers can be shopping malls, strip malls, or town centers. Central business districts are where people also go for work, to visit restaurants, and for entertainment.
Traditional retailers appeal to consumers who prefer an in-store experience. Traditional retailers include specialty, department, and convenience stores.
Comes consumers seek deals when they are making purchases and choose discount retailers. Discount stores include supercenters; warehouse clubs; off-price retailers; and factory outlets, big box, and dollar stores.
Retail is not limited to buying objects. Service retailers provide services such as accounting, lawn, and pet-sitting services. Services are unique because they are intangible, variable, inseparable, and perishable.
Retail businesses are distinguished by their type of ownership. These include independent stores, chains, franchises, and leased departments.
Forms of retail ownership each come with unique legal responsibility. Ownership choices include sole proprietorship, partnership, corporation, and limited liability company (LLC).
Brick-and-Mortar Retail
Key Terms for This Lesson:
Anchor store: large retail store that attracts many consumers to a shopping mallBig box store: large specialty discount store
Boutique: highly-specialized retail store that caters to consumers seeking unique items and a high level of customer service
Brick-and-mortar: store that has a physical location to display and sell merchandise and services
Central business district (CBD): central location for retail, business, and transportation activities in a city or town; often referred to as downtown
Chain store: two or more retail stores owned by the same person or company
Corporation: business that recognized as a separate legal entity from its owners
Factory outlet: retail store in which excess or unsold merchandise is sold at a discount directly to the public by the manufacturers, designers, or specialty stores
Franchise: legal agreement granting the right to sell a company's goods or services in a particular geographic area
Franchisee: people who buy the rights to use the brand, learn the franchisor's trade secrets, and open their own business
Franchisor: parent company that owns the chain and the brand of a franchise
Independent store: small retail business with one location and is privately owned and operated
Kiosk: very small structures with one or more open sides to display and sell a limited number of goods
Leased department: space within a larger store that is leased to a smaller store, boutique, or designer
Liability: legal and financial responsibility
Limited liability company (LLC): form of business ownership that limits the personal liability of owners and can provide tax benefits
Manufacturer retail store: retail store that only sells the products from one manufacturer
Off-price retailer: retailer that sells brand-name merchandise at big discounts
Partnership: relationship between two or more people who join to create a business
Service retailer: business that provides services for a price
Sole proprietorship: business owned by one person
Specialty store: retailer that sells a limited product line, but offers a wide variety options within the product line, in addition to other related items
Stockholders: people who invest money in a company through buying stock, or a part ownership
Supercenter: very large discount department store that also sells a complete line of grocery products; also called a hypermarket
Town center: open-air shopping center with many retailers
Traditional retailer: store-based retailer that uses that five senses (sight, touch, taste, smell, and hearing) to enhance the shopping experience
Warehouse club: retailer that only sells merchandise in bulk
Important Concepts for This Lesson: